Arkansas § 14-234-504 - Cost estimate — Contents of ordinances — Bonds.

§ 14-234-504. Cost estimate — Contents of ordinances — Bonds.

Whenever the respective legislative bodies of two (2) or more municipalities shall determine to purchase or construct a waterworks system for the respective municipalities under the provisions of this subchapter, they shall cause an estimate to be made of the costs thereof and shall, by ordinances, provide for the issuance of revenue bonds under the provisions of this subchapter. The ordinances shall set forth a brief description of the contemplated respective improvements, the estimated costs thereof, the amount, rate of interest, time and place of payment, and other details in connection with the issuance of the bonds. The bonds shall bear interest at such rate or rates, payable semiannually, and shall be payable at such times and places not exceeding thirty-five (35) years from their date, as shall be prescribed in the respective ordinances providing for their issuance. The bonds shall be executed by all of the municipalities joining in the undertaking by their respective mayors and clerks or recorders and be the joint and several obligations of the several municipalities. The ordinances of the respective municipalities shall also declare that a statutory mortgage lien shall exist upon the respective properties so to be acquired or constructed, fix the minimum rate or rates for water to be collected within the respective municipalities prior to the payment of all of the bonds, and pledge the net revenues of the respective municipalities derived from the waterworks systems in the respective municipalities for the purpose of paying the principal of and interest on the bonds. The rates to be charged within each municipality for the services from the waterworks system within each municipality shall be sufficient to produce total net revenues from all of the municipalities joining in the undertaking to provide for the payment of interest upon all of the bonds issued to provide funds for the costs of acquisition or construction of all of the waterworks systems and to create a sinking fund to pay the principal of the bonds as and when it becomes due. The respective ordinances shall also provide for the operation and maintenance of the respective waterworks systems and to provide adequate depreciation funds.